ADF Definition

Bookmark and Share

ADF, in invoicing, is After Deducting Freight.

Learn new Accounting Terms

LOT COSTING see BATCH COSTING.

CONTRIBUTION/SALES RATIO (C/S RATIO) is a tool used in profit management. It is important to establish the C/S RATIO: C/S ratio = (Sales revenue - Variable cost of sales)/Sales revenue x 100. If a company achieves a high average marginal profit ratio of say, 40%, it does not mean that it will achieve high profits. The eventual profit will be dependent on the level of fixed costs within the organization.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.